Stocks and bonds sold off, while gold extended its decline, as renewed fighting in the Middle East drove oil prices higher, fueling inflation fears and expectations for tighter monetary policy. MSCI’s Asia Pacific equities gauge fell 1.8% to a one-week low with decliners outnumbering gainers five to one, and all 11 industry groups retreating as caution swept across markets. That pulled down the MSCI All Country World Index — the broadest barometer of global stocks — to its lowest level in almost a month. Brent crude jumped 1% to $95.60 a barrel, heading for its fourth gain in five days. Diesel rose to the highest in more than four months and European natural gas prices are at the highest levels since 2023 as escalating fighting between the US and Iran heightened the risk of disruptions to energy flows through the Strait of Hormuz. Rising oil prices pressured bonds, pushing global yields to the highest since 2008, as traders increased bets the Federal Reserve and other central banks will raise interest rates. Treasury 10-year yields climbed one basis point to 4.81%, the highest level since late 2023. The renewed surge in energy prices is compounding inflation concerns already fueled by government spending and heavy corporate borrowing to finance the artificial-intelligence buildout. Traders now put the odds of a rate hike this month at more than 50% for four major central banks, as investors assess whether rising oil prices and bond yields will deepen pressure on stocks and other assets. Lee said he is still maintaining a constructive view on Asia Pacific markets, especially those in North Asia, as “the underlying earnings picture is solid.” The renewed surge in energy prices is compounding inflation concerns already fueled by government spending and heavy corporate borrowing to finance the artificial-intelligence buildout. Traders now put the odds of a rate hike this month at more than 50% for four major central banks, as investors assess whether rising oil prices and bond yields will deepen pressure on stocks and other assets. Lee said he is still maintaining a constructive view on Asia Pacific markets, especially those in North Asia, as “the underlying earnings picture is solid.” Elsewhere, gold, which becomes less attractive as interest rates rise, dropped 0.6% to around $4,300 an ounce after falling almost 6% over the previous three days. In stocks, Dell Technologies Inc. bucked the overall downbeat tone, jumping 8% in extended trading after raising its annual sales forecast. Tech remained in focus with Nvidia Corp. said to be in advanced talks to acquire artificial intelligence startup Hugging Face in a $14 billion deal. The yield on US 30-year bonds climbed back to levels seen just before Treasury Secretary Scott Bessent expanded a buyback program in an effort to contain long-term borrowing costs. Australian bonds extended losses, with yields on the 10-year note climbing as much as seven basis points to 5.25%, the highest level since July 2011. New Zealand government debt also declined as the central bank raised interest rates at a monetary policy meeting as economists forecast Meanwhile, the US military said it completed the strikes, even as Iran said it launched a missile attack on a US air base in Jordan. The exchange followed weeks of relative calm, during which the Trump administration had shifted from military action toward economic pressure on Tehran. The renewed tensions are adding to Wall Street’s challenges as a global bond rout deepens. Fed Chair Kevin Warsh’s Jackson Hole speech last week also fueled expectations for tighter monetary policy, with markets now assigning about a 70% probability to a September rate increase. Swaps have almost fully priced in a European Central Bank hike on Sept. 10 and assign a 58% probability to a Reserve Bank of Australia increase on Sept. 29. Markets are fully pricing in a Bank of Japan move on Sept. 18. US After Hours GTLB +16.5%, DELL +7.4% higher on earnings; MDB -14.4%, CRDO -8.7%, PANW -1.1% lower on earnings.
Nikkei -2.61% Hang Seng -0.46% CSI -0.98% Kospi -3.89% Shanghai -0.67% Shenzen -1.02%
Eur$ 1.1581 CNH 6.7240 CNY 6.7227 JPY 160.25 GBP 1.3505 CHF 0.8128 RUB 86.8241 TRY 48.2958 WTI$ 90.74 +0.59% Gold 4,295 -1.31% BTC 77,485 +0.12% ETH 2,417-0.16%
S&P -0.04% Nasdaq -0.13% EuroStoxx -0.34% FTSE -0.35% Dax -0.42% SMI 0.15%
Macro :
- Trump’s Energy Chief Says Venezuela Poised to Double Oil Output
- Italy Aug. New Car Sales Rise 3.15% Y/y
- Lone Pine Alum Salimian Starts $500 Million Long-Only Tech Fund
- Seraphim Launches New ETF to Target Pure-Play Space Investors
Keep an eye on :
- AC FP : Accor to Offer €380m New Notes, to Partly Buy Back Notes Due ‘27
- AD US : TDS Drops Array Buyout Bid, To Resume Share Repurchases
- AMZN US : NASA Awards Blue Origin ~$700m Mars Telecom Contract
- BBVA SM : BBVA Names News Heads for Global Equities and France CIB
- BOSS GY : Hugo Boss Ends Buyback to Counter Frasers’ Majority Push
- BWLPG NO : BW LPG Launches Offering of $300 Million Convertible Bonds Due 2031
- CIRSA SM : Lottomatica To Buy CIRSA in All-Share Deal
- ATD CN : Couche-Tard 1Q Adjusted EPS Beats Estimates
- CRDO US : Credo Falls as Results Fail to Impress After Rally: Street Wrap
- DELL US : Dell Rallies as Strong AI Demand Supports Forecast, DELL Boosts FY Revenue Forecast, Beats Estimates: Snapshot (1)
- DIS US : Ambani’s Streaming Site Eyes Millions of Indian Diaspora
- DBX US : Dropbox User Accounts Breached by Hackers Who Accessed Data
- ENGI FP : Nokia, Engie to Join Euro Stoxx 50 Index
- G1A GY : GEA Group Holder Offers About 5m Shares, Terms Show
- GTLB US : GitLab Jumps After FY Revenue Forecast Boost Beats Estimates
- GOOGL US : Google Set to Release Gemini 3.8 Flash AI Model This Week -- WSJ
- IVG IM : Tata Motors Clears All Regulatory Hurdles for Iveco Offer
- KVUE US : Australia Regulator Approves Kimberly-Clark’s Purchase of Kenvue
- KOG NO : Kongsberg Gruppen Closes Purchase of Underwater Acoustics Specialist Sonatech
- LTMC IM : Lottomatica To Buy CIRSA in All-Share Deal
- META US : Meta Disables Cameras on Some Tampered Smart Glasses: Semafor
- NESN SW : Nestle Sells Vitamins Business to Private Equity for $1 Billion
- NOKIA FH : Nokia, Engie to Join Euro Stoxx 50 Index
- NVDA US : Nvidia Is Said to Near $14 Billion Hugging Face Deal This Week
- PLTR US : Palantir to Deliver Eight TITAN Systems to US Army
- PANW µUS : Palo Alto Networks Profit Outlook Tops Estimates, Margins Narrow
- RHM GY : Drone Warfare Adds to Need for Secure Vehicles, Patria CEO Says
- RWE GY : Amprion Says Police Investigate Substation Incident Near Cologne
- SHEL LN : Shell To Buy Tri Star Energy From Parman, Kimbro
- SRG IM : Edison, F2i, Retina in Final Race for Snam’s Bioenerys: Sole
- SNAP US : Snap CEO Sees Smartglasses as Long-Term Bet, but Some Leaders Concerned About Time Spent on Them -- WSJ
- SYENS BB : Blackstone, Apollo Said to Mull Bids for €3 Billion Syensqo Unit